Throughout 2017, it seemed like you could not avoid hearing about bitcoin. The electronic payment system allows people to buy things and exchange money without involving banks, credit card issuers or other third parties. Bitcoins, the system’s digital currency, boomed in value over the past 12 months and remain one of the hottest investments on the planet.

But do you really understand what bitcoin is and how it works? Watch this Khan Academy video to learn why using bitcoins is an attractive way for some people to pay, and why people prefer it to other payment systems such as PayPal.

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